When choosing car insurance, it’s important to take into consideration what you can afford to pay out of pocket in the event of a crash or a similar “unfortunate incident” as well as the price you can afford to pay every month for your premium. Many people find – when they make a claim – that the insurance they thought would cover repairs actually won’t. That then leaves them with an often astronomical bill to take care of, especially if hospital visits are forthcoming for one or more people.
Thankfully, there are three main types of insurance policy available in the United States today – and some are more suited to any given situation than others. Which type of policy is right for you? Read on to find out a little more about the different variations.
This type of insurance will cover you only in the event of an accident that is deemed your fault by the investigating authorities. It’s the simplest and cheapest type of insurance in many states, so if you really can’t afford anything else, this is what you’ll need. However, since these types of insurance policies usually have an upper limit beyond which you are responsible for paying the bill, it’s logical to try to get a little better coverage if you can afford to.
- Comprehensive – or “Fully Comp…”
If you have a lease or a lien on your car or truck, this is the type of insurance your bank or the garage you lease your vehicle from will probably insist upon. There’s a good reason for this: comprehensive does exactly what it says on the tin – it’ll cover you, no matter what (though naturally you need to read the fine print).
Naturally, anyone holding a lien on your vehicle wants to ensure that their asset – which the vehicle is, until you make the final payment – remains valuable. If you’re involved in an accident, the insurance policy will ensure the vehicle is repaired and retains its fair market value as much as possible.
If you’re stuck between a proverbial insurance rock and a hard place: without the money to pay for fully comp but unhappy with liability alone, there’s another way. Adding collision insurance to your premium can mean the difference between having to pay for your own repairs in the event of an accident and having them at least partially taken care of for you. If your car is totaled, you’ll be paid what it was worth before the accident.
Collision insurance can leave you with the option to purchase another vehicle if yours is written off, which can be a saving grace for many people. However, it might not be worth the premium if your car is very old or in bad shape.
Naturally there are other forms of car insurance that could be better for your individual situation than those mentioned above – including medical insurance and uninsured motorist protection. Talk to your agent about options – you might find yourself able to build a custom policy.
There’s nothing wrong about trying to take care of you for the future. But what about taking care of your PRIVACY? Ever thought of that? Someone might be doing a background check of you and uncover information you’ve never knew you had online. That’s why finding the best background check service might be something you want to do for the future.
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